October 07, 2013

Aurobindo and Nifty: The Correlation

We have come across an interesting pattern and relation between Aurobindo Pharma and Nifty. Aurobindo Pharma seems to be roughly a few trading sessions ahead of Nifty! The charts look similar and have the similar characteristics. The target as per this trend is: A NEW HIGH!

Aurobindo Pharma and NIFTY

1. Look at the semi-circular move.
2. Point A shows that Aurobindo had predicted a bottom ahead of NIFTY.
3. Look at the falling trendline range, even that is in tune. The movements in Aurobindo are ahead of NIFTY.
4. Look at the major bottomg B and it's structure! Similar in nature for both.
5. Even the Gap's appear to be in sync.

Future Movement:
Aurobindo Pharma has broken the falling trendline resistance and has started moving to highs after a long time. If the charts fall in sync again this time, the NIFTY index is set for new highs! And the rally is set to be continuous and powerful!
Stay tuned to DalalStreetBulls for such analysis and trades.